Mixed-status family second stimulus payment question

[canrun1975]

Greetings all,

My question might be very easy or somewhat complex to answer. My wife and I have not received the second stimulus and I'd like to see if were both eligible. No kids. I've search all over Google and can't find exactly what I'm looking for. In summary, my wife and I moved to China in 2019 after many years in the US. She has a SSN and we file jointly. We received the first stimulus in May 2020. At the end of 2019 my wife voluntarily gave up her green card, but we still filed jointly (by mail, with explanation letter, as required by Turbotax.) We have not received the second stimulus and the IRS website says no information available. With our unique situation (wife no GC, so a non-resident alien, but DOES have SSN and we DO file jointly) I just wanted to know if I alone, or we both, or none of us qualify for the second stimulus. Thanks for your help! Canrun1975

[KathrynG3]

Assuming you are a U.S. Citizen and only your wife is a nonresident alien who also has a Social Security Number, you could still qualify for the second stimulus payment.

As you found, the guidance on the second payment is unclear for your status. We are still waiting on the IRS to clarify a number of points. For more information, please refer to: Questions and Answers about the Second Economic Impact Payment which is still getting updates. 

To check your payment status with the IRS, go to: Get My Payment Link. 

If you should have qualified for the second economic stimulus payment, then the Recovery Rebate Credit will be calculated on the 2020 Tax Return. TurboTax will calculate this automatically based on what is reported in the program. If it is not included, then the requirements were not met.

To calculate the Recovery Rebate Credit yourself, go to Form 1040 and 1040-SR Recovery Rebate Credit Worksheet.

[canrun1975]

Thank you very much for the reply! It's quite helpful. Yes, I am a US citizen and my wife is a non-resident alien with a SSN as of 2020. We file jointly.  I will do as you suggest and keep my eyes open regarding clarification. Hopefully by the time I do taxes in late February/early March things will be more clear, but for now I'll assume we do both qualify unless I learn something different. Thanks again! -[removed]

[canrun1975]

Hi, I've not been able to find anything online in the past two weeks regarding my question. Still no check from the IRS or information on the portal. Would anyone be able to shed any new light on my situation, or should I just go ahead and claim a $1,200 refund on my taxes when I file in a few weeks? Thank you for any updated help! 

[Irene2805]

If your wife is a nonresident alien, she is NOT eligible for the second stimulus payment.  However, you are.

If you don't receive your stimulus payment by the time you file your tax return, you can make an adjustment on your 2020 tax return for stimulus payments you qualify for, but have not received. 

To do this in TurboTax, please follow these steps:

1. Enter the information in your return.
2. Click Federal Review at the top of your screen. 
3. On the screen, Let's make sure you got the right stimulus amount, click Continue.
4. You will be asked about the amounts of first round and second round stimulus payments you received. 
5. TurboTax will then calculate the amount of stimulus payment remaining that you are still entitled to.  This will show as a credit on line 30 of the 1040.

Currently there is no way to indicate that your wife is a nonresident alien in TurboTax, so it may calculate the stimulus payment for your wife.  As a workaround, enter that she did receive the $600 so that the credit for her won't calculate.

For additional information, please see the following articles on the IRS website:

• Economic Impact Payment Information Center
• Questions and Answers about the Second Economic Impact Payment

[canrun1975]

Thank you for the reply!

And I do not mean to be thick as a brick and beat a dead horse, but just to confirm: my nonresident alien wife DOES have a SSN and we file jointly. She is NOT eligible for the second refund though, is that correct? (I am a US citizen). 

Thanks a lot and I'll cease and desist for now. Ha! 😉 

[JotikaT2]

Yes, that is correct.

Since she was a nonresident, she is not eligible for the second refund.

[canrun1975]

Got it. Thank you. I will do as was suggested previously when we file. 🤝

[canrun1975]

I'd like to ask a follow-up question.

As the new stimulus has been passed, considering my wife's status as outlined above, will she be eligible for the latest stimulus payment as enacted by law today?

I've not found much yet and hoping I can get an answer here. Thank you! 

[Anonymous]

I am being picky, but it's still not a law.  It is not a law until the president signs it.  There is no reason to think he won't, but it's not actually law yet. 

The only reason that really matters, is that until it is officially law, the IRS can't begin to establish official policies and procedures and get those out.  

In the past, it's always been about does she have an SSN or an ITIN.  SSN=pay, ITIN= no pay (except they did update that in round 2.)  What round 3 will be like at this point no one can really say.  The answer will likely not be known for several weeks or perhaps even months (checks were already going out before the IRS clarified this particular point on the first round.)

[ErnieS0]

No. Under the proposed American Rescue Plan Act of 2021, nonresident aliens will NOT be eligible for the third stimulus payment:

“SEC. 6428B. 2021 RECOVERY REBATES TO INDIVIDUALS.

“(a) In General.—In the case of an eligible individual, there shall be allowed as a credit against the tax imposed by subtitle A for the first taxable year beginning in 2021 an amount equal to the 2021 rebate amount determined for such taxable year.

“(b) 2021 Rebate Amount.—For purposes of this section, the term ‘2021 rebate amount’ means, with respect to any taxpayer for any taxable year, the sum of—

“(1) $1,400 ($2,800 in the case of a joint return), plus

“(2) $1,400 multiplied by the number of dependents of the taxpayer for such taxable year.

“(c) Eligible Individual.—For purposes of this section, the term ‘eligible individual’ means any individual other than—

“(1) any nonresident alien individual,

“(2) any individual who is a dependent of another taxpayer for a taxable year beginning in the calendar year in which the individual’s taxable year begins, and

“(3) an estate or trust.

[canrun1975]

Thanks for the replies.

If, ultimately, I do not receive a third stimulus (as I did not with the second), how should I go about filing for it? I will file 2020 taxes next week. Should I wait and see 2-3 more weeks? Go ahead and file for the one for myself only? Any suggestions?

I'm pretty sure I did not get the second stimulus because A. we filed paper last year due to giving up my wife's green card (described above) and the 2019 return has not yet been processed or B. the change of GC status messed everything up. 

Any thoughts or suggestions are much appreciated (on how to claim the third stimulus for myself. As I understand it, my wife will not be eligible.)  Thanks.

[DawnC]

Since the bill is not yet signed, it is not yet law.  Once it becomes law, the IRS will start issuing tax guidance and information regarding stimulus payment.  Right now, it is still too early to answer the ''how do I go about filing for it?'' question.     This is what we do know now - and this will apply if the law is signed as it.   TurboTax will communicate all information as soon as it is available, so keep checking back here.  

If you have an adjusted gross income (AGI) of up to $75,000 ($150,000 married filing jointly), you should be eligible for the full $1400 stimulus payment.

*Note, adjusted gross income (AGI) is your gross income like wages, salaries, or interest minus adjustments for eligible deductions like student loan interest or your IRA deduction. Your AGI can be found on line 8b of your 2019 Form 1040 or on line 11 of your 2020 Form 1040.

As your AGI increases over $75,000 ($150,000 married filing jointly), the stimulus amount will go down. The stimulus check rebate will completely phase out at $80,000 for single filers with no qualifying dependents and $160,000 for those married filing jointly with no dependents. 

Once again, mixed-status households (households with different immigration and citizenship statuses) will be eligible for stimulus payments.

[canrun1975]

Once again, mixed-status households (households with different immigration and citizenship statuses) will be eligible for stimulus payments.

Am I getting  different answer as the two previous? Is my wife actually, in fact, eligible for the third payment?

(I'm not being aggressive in my words...I'm genuinely curious). Yes, I know we should probably wait a couple of days until the bill is law for clarity's sake.

[DawnC]

No, if your wife is a nonresident alien for tax purposes, she does not qualify for a 3rd stimulus payment, if the law is signed as is.   

U.S. citizens like yourself in mixed-status families were denied the advance stimulus payments under the Coronavirus Aid, Relief, and Economic Security (CARES) Act, passed in March of 2020, if a dependent in their household did not have a Social Security Number.   The credit could be claimed on the 2020 tax return for those citizens who did not receive the advance payments.   The 3rd advance payment will be issued to US citizens that have non-citizens on their tax returns.  

Qualifying couples can get a maximum stimulus payment of $2,800. However, joint returns for mixed-status families with only one valid identification number (this is defined as the Social Security number that is used when filing taxes) will only get up to $1,400, and joint returns without valid identification numbers for either spouse will be excluded.